Saudi Arabia is making strides to become a leader in the global digital economy. One of its latest initiatives is a partnership between Saudi tech company Humain and NVIDIA to build AI data centres in the region. Data centres come with a high cost and consume massive energy to operate and prevent equipment from overheating. These infrastructures also generate e-waste such as outworn computers, monitors, and circuit boards. And e-waste is a global issue.

E-waste is predicted to reach 82 billion kg by 2030 and so far, only 22.3% of e-waste is collected and recycled responsibly. In Saudi Arabia, per capita waste generation rose from 1.15 kg to 1.39 kg per day between 2010 and 2016. And e-waste generation is expected to reach 1,102 million kg by 2030. 

The challenge with e-waste lies not just in the sheer volume of discarded electronics, but in the way they are disposed of. Effective e-waste management includes recycling, recovering metals, and  safely disposing of the material. E-waste, if not disposed of properly can release toxic chemicals like lead and mercury that can harm environmental and human health.

In response to this, Saudi Arabia has adopted different strategies. As part of its Vision 2030, the Kingdom has set a goal of establishing 100 % e-waste recycling. As of 2023, Saudi Arabia’s recycling rate ranged from two to four % and the Ministry of Environment, Water, and Agriculture’s goal is to increase this rate to 95%. 

The National Center for Waste Management (MWAN), established in 2019 and Saudi Investment Recycling Company (SIRC), established in 2020, support the Ministry in this goal and vision. SIRC focuses on driving investment in recycling infrastructure and MWAN regulates and supervises waste management. MWAN’s goals include achieving a 90-95%  rate by 2035 and an above 90% reuse and recycling rate for e-waste and damaged batteries.

Most recently, SIRC signed a MoU with U.S investment firm, EIG Management Company, LLC to develop large-scale waste management projects in Saudi Arabia. This includes facilities that can turn waste into alternative fuel and convert used tyres into energy products.

Private Sector is Stepping Up

With these government initiatives, public and private companies are participating in e-waste recycling and management. For example, Saudi company, TADWEEER operates a program that lets users donate their old electronic equipment for others to use. And U.S. company Clorox's Dammam and Jeddah plants have already achieved 100% zero waste to landfill. 

Closer to home, entrepreneurs are also driving solutions. In an interview with Waste and 

Recycling magazine, Dr. Ahmad Alghanem, Founder and CEO of GrapheneGolden, a waste management company, explained the process of reducing and recycling waste at large and also, priorities for the industry. Alghanem is also the CEO and Co-Founder of Tkhalas, an app that eases the process of recycling materials from homes, offices, factories, to new products. "The regulators are working hard to support SMEs, startups and there's so many opportunities in this field. It's moving very fast,” said Dr. Alghanem.

Looking into the future, Dr. Alghanem explained the importance of integrating AI and improving the supply chain for waste management. He explained that the typical global processes of sorting and recycling waste is lengthy and slow-moving.  “I think now it's important to use technology like AI for waste management,” he said. He recommends technology companies to develop logistics and integrate AI. According to Dr. Alghanem, this would cut time, reduce effort, and enhance recycling opportunities and availability for everyone.

Technology is imperative in advancing the circular economy and this is an approach that is a focus of Basatne, a U.S. based consumer electronics distribution and logistics company with global head offices in Saudi Arabia and the UAE. Some of Basatne International's activities include distributing new electronics to businesses, operating buy-back and trade-in programs, and repairing, refurbishing, and recycling used or damaged electronics to reduce waste and maximize product life.

Mohammed Sleiman, CEO MENA region, Basatne and also the Founder and CEO of Cartlow, an app that allows customers to buy and sell electronics including pre-owned and open-box items explained that the circular economy today requires integration. Specifically, it requires integration across technology, operations, and circulation channels. He explained that Basatne has made significant investments in developing the technology that can be integrated by different partners such as marketplace sellers and distribution networks. In 2023, Basatne International opened a facility in Dubai that uses AI systems to reduce e-waste by processing up to 7,000 mobile devices daily.

When asked about the opportunities for Basatne in achieving its goal of digitizing circularity, Sleiman explained the market potential. “From a market sizing perspective, the opportunity exists a hundred percent because going forward, there's no business that's going to run without either swap, or buy back, or retail.” said Sleiman. Based on their market research, Sleiman explained that Saudi Arabia represents the largest market for these opportunities in the GCC region and the second is the UAE.

Domestic efforts are garnering global interest

Saudi Arabia’s efforts are attracting international collaboration. Dalia Samra-Rohte, Delegate of German Industry & Commerce for Saudi Arabia, Bahrain, and Yemen, GESALO, explained the opportunities and challenges German businesses face when entering the Saudi market for recycling and e-waste management.

"In the recycling sector, which is a very new sector, it's good to partner up with strong local private sector companies and there [in Saudi Arabia] we have companies to introduce different partners and customers,” said Rohte. GESLAO aims to strengthen and build economic relations between Germany and its partner countries which includes supporting German companies entering and growing in Saudi, Bahraini, and Yemeni markets.

There’s no slowing down of AI adoption and data center developments.And with support from government initiatives and international interest, GCC business leaders are using technology to tackle one of technology’s biggest challenges, e-waste. It will be interesting to see what new solutions emerge next.